FDIs seen hitting $75 billion in 2010-2020

MANILA, Philippines - The Joint Foreign Chamber of the Philippines (JFC) predicted on Monday $75 billion in foreign direct investments (FDI) and the creation of 10 billion new jobs for 2010 to 2020.

During the presentation of the Seven Big Winners: High Growth Sectors for Investment and Jobs, Australian-New Zealand Chamber of Commerce president John Daniel Casey said the Philippines will be able to attract $75 billion worth of FDI during the 10 year period if the government follows key policy changes and implementation suggestions of JFC.

“There is no reason why this cannot be achieved,” Casey said. To achieve this, he explained that the country needs to get $7.5 billion worth of FDI per year. This figure is more than triple the current FDI of $2 billion per year.

According to Casey, the country cannot rely on overseas Filipino workers’ remittance alone because it is insufficient.

The FDI in the ASEAN region is estimated to be around $200 billion per year and the Philippines only receives two percent. The country can receive a big part of it through better policy implementation and changes in some laws.

Casey said they will present the results of their study to the next administration. A roadmap will be published in July or August. The road map contains policy changes, some of which require constitutional change like the amendment of foreign ownership and the restriction of foreign practice in services.

When asked which presidential candidate can best implement the roadmap in order to achieve the targets, Casey said the next president must be a visionary, must be capable of implementing a detailed plan and must be able to generate interest in the Philippines.

The group refused to comment on whether the track record of either of the leading presidential candidate qualifies them in implementing the required policy changes including the charter change,

The seven big winners are agribusiness, business process outsourcing (BPO), manufacturing and logistics, creative industries, mining, infrastructure and tourism.

For agribusiness, JFC said that there is a need to ramp up agricultural education and training in order to lower the cost of farm inputs. Likewise the CARP should end in five years and the limits on landholding should be lifted.

For the BPO, they said there is a need to strengthen the industry with a robust legal framework, develop a highly positive supportive environment for the industry and raise quality and quantity of labor supply available to the industry.

For the creative industries, JFC recommended that a legislation must be passed to create creative industries development council and organize private sector into a creative industries association. Also they proposed that foreigners be allowed to practice in the creative industry profession.

For infrastructures, the group said the country must prioritize investments in airport terminal, runway and communications facilities and that each region must have one international airport only. Also, there must be an NCR/Central Luzon Transportation Master Plan.

For Infrastructure, they said the Department of Energy must formulate policies and plans to address the long term power purchase agreements. Also they said the Visayas WESM must be implemented without delay. Also, the group said the government must enhance the credit worthiness of water supply agencies.

There is a need to accelerate the construction of road projects, increase transparency in road projects and amend the BOT law.

For manufacturing and logistics, JFC said there must be an industrial master plan, level the playing field between imports and locally produced goods and ramp up promotion of Philippine exports.

For mining, JFC said that the government must remove redundant approvals and non performing claims. Also, concerned groups must be provided with the right information in order to avoid mining disputes.

For tourism, there is a need to improve international connectivity and develop and implement national and destination master plans.